University Of California, Davis Operations And Supply Chain Management Assignment Help - CVP single product

Question - CVP single product; comprehensive
Beantown Baseball Company makes baseballs that sell for $13 per two-pack. Current annual
production and sales are 960,000 baseballs. Costs for each baseball are as follows:

Use the contribution margin ratio to calculate break even point sales.
a.Calculate the unit contribution margin in dollars and the contribution margin ratio for the company.
Round your answers to two decimal places.
Contribution Margin
Dollars per Unit $
Percent %
b.Determine the break-even point in number of baseballs.
baseballs
c.Calculate the dollar break-even point using the contribution margin ratio. Round your answer to the
nearest dollar.
$
d.Determine the company's margin of safety in number of baseballs, in s ...Read More ales dollars, and as a
percentage. If required, round your answers to one decimal place.
MS, in units baseballs
MS, in dollars $
MS, percentage %
e.Compute the company's degree of operating leverage. Round your answer to three decimal places.
If sales increase by 30 percent, by what percentage would pre-tax income increase? Round your
answer to one decimal place.
%
f.How many baseballs must the company sell if it desires to earn $1,096,000 in pretax profit?
baseballs
g.If the company wants to earn $750,000 after tax and is subject to a 40 percent tax rate, how many
baseballs must be sold?
baseballs
h.How many baseballs would the company need to sell to break even if its fixed cost increased by
$50,000? (Use original data.)
baseballs
i.Beantown Baseball Company has received an offer to provide a one-time sale of 20,000 baseballs
at $8.80 per two-pack to the Lowell Spinners. This sale would not affect other sales, nor would the
cost of those sales change. However, the variable cost of the additional units would increase by $0.20
for shipping, and fixed cost would increase by $6,000. Based solely on financial information, should

the company accept this offer?
- Select your answer -YesNoItem 13
Show your calculations. Enter a loss as a negative number.
Additional sales $
Additional variable costs:
Additional Contribution margin $
Additional fixed costs
Additional pretax income (loss) $
What other factors should the company consider in accepting or rejecting this offer?
The input in the box below will not be graded, but may be reviewed and considered by your instructor. ...Read Less

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